Daimler Sets Battery Production Standards

Mercedes-Benz and parent company Daimler AG have been on the
electric offensive for the better part of this decade. With a renewed CASE
corporate strategy the company has a guided focus on the direction of the
company and has started several endeavors to assure Mercedes-Benz stays ahead
of its competition in the current EV production race that has captivated the
entire automotive industry.

The conquest piece Mercedes has focused on to achieve a core
competency in the EV field comes at the hands of battery cell production. With
consumer demand of electric vehicle offerings expected to increase 25% by 2025,
Mercedes along with other automakers know the focus is not only on quality of
EV’s but on increasing quantity and output of EV offerings. With battery
production being the most cost sensitive piece in electric vehicle
manufacturing, Mercedes has tackled this issue by investing heavily up front in
its battery production network. One such factory in Kamenz, Germany is tasked
with just battery production in mind, with two more in Stuttgart, Germany to
follow suit come 2019. To ensure a flexible and efficient battery production
network Mercedes also has options to build factories in China, Thailand, and
the US to be prepared to meet the increasing demand in the coming years.

Battery cell purchases to the tune of 20 million euros has
ensured Mercedes-Benz will have enough supply of essential materials for
electric vehicle production until 2030, with battery production from the new
factories to take over demand in the years after. In purchasing large quantities
of battery cells Daimler uncovered underage mining of cobalt in countries such
as the Democratic Republic of Congo, where most of the world’s cobalt needed
for electric car batteries is sourced. Combating this severe issue, Daimler has
employed over 700 engineers working to audit suppliers’ entire supply chain
management, down to the staff in the mines. As Mercedes works tirelessly to
ensure its position in the EV future, many automakers are taking note on how to
effectively take on the daunting task of transforming their traditional ICE
vehicle lineup to the EV vehicle lineup that will meet future consumer’s
demands.